I'm a landlord

Fergie101

Unfortunately due to work and personal issues I need to rent out my home that I own and move to another town to rent.

I don't want to be a landlord but here I am.

Do I need to register with any agency or declare any rental income I receive?

The rental income for a home in my area is only covering 60% of my mortgage.

gerrybbadd

Fergie101 wrote: »

Unfortunately due to work and personal issues I need to rent out my home that I own and move to another town to rent.

I don't want to be a landlord but here I am.

Do I need to register with any agency or declare any rental income I receive?

The rental income for a home in my area is only covering 60% of my mortgage.

Yes.

You will need to register with the PRTB. Also, you will need to declare your rental income to Revenue, even if you are making a loss.

Fergie101

Thanks Gerry for the quick reply

No doubt that this will cost money to register.

The_Morrigan

Fergie101 I would suggest that for the first year at least you hire an accountant to help you with the requirements of a landlord tax return.

Fergie101

Sorry , it is the law that I register with the PRTB?

The_Morrigan

Fergie101 wrote: »

Sorry , it is the law that I register with the PRTB?

Yes it is.

Read the information given by citizens advice in relation to landlord and tenant obligations in Ireland.

http://www.citizensinformation.ie/en/housing/renting_a_home/

shruikan2553

Fergie101 wrote: »

Sorry , it is the law that I register with the PRTB?

Each tenancy must be registered or you can be fined.

Eldarion

gerrybbadd wrote: »

Yes.

You will need to register with the PRTB. Also, you will need to declare your rental income to Revenue, even if you are making a loss.

Slightly misleading here. You sound like you're implying that he won't have to pay tax on his rental income since he's "making a loss", this is not the case. Yes he can offset quite a number of expenses against the tax he pays on the rental income but he still has to pay the tax.

The big thing I'd like to point out is that the mortgage principle payments themselves can not be offset against tax, and he still has to pay tax even if the total repayments exceed the rental income.

List of Expenses allowed to be offset
· Qualifying mortgage interest
· Management fees
· Advertising expenses
· Estate agent fees
· Insurance premiums
· PRTB tenancy registration fee
· Legal fees for drawing up leases
· Mortgage protection policy premium
· Accountants fees for preparing rental accounts
· Refuse and other service charges – if paid by the landlord
· Cost of repairs and maintenance – this covers repairs and general maintenance of a property, however it is not possible to claim for your own time, for example, cutting the grass
· Wear and Tear

Zulu

If you don't register with the PRTB you are liable to a rather large fine. Not sure the exact amount. So you have to register.

In short the PRTB was set up to create more jobs for the boys. It's as close to a shake down/protection racket you'll come across. It does absolutely NOTHING for you as a landlord except ensure you get shafted in the event of dodgy tenants. ...But all you can do, sadly, is suck it up and make sure that every and any politician you talk to knows how you feel.

In better news, it's not all terrible. Interest you pay on your mortgage is a tax expense, so that can (as is the case of one of my properties) wipe out your tax liability.

Hire an accountant for a consultation. You only really need about 2 hours of their time. They should be able to talk you through a simple tax return for your rental income, and explain to you the basic expenses you can claim. Keep all your DIY/furniture/white good receipts that you receive for any work you do on the rental property - these would all be valid expenses which help reduce your tax liability.

If you want any help - just ask. Sorry to hear you've join the ranks; best of luck

murphaph

Zulu wrote: »

In better news, it's not all terrible. Interest you pay on your mortgage is a tax expense

Not quite. Only (a completely arbitrary) 75% of mortgage interest is deductible.

Fergie101

Thanks

So as I'll also be a tenant in another house, I can qualify for rental relief on the rent I pay too?

mistress_gi

Check the going prices well rents have gone crazy in the last 6 months!

Zulu

link

If you are renting accommodation privately (whether in Ireland or outside the State) and pay income tax, you may be eligible for tax relief on part of your rent. You can only claim this relief if you were already renting at 7 December 2010. If you were not renting on that date and you subsequently entered into a rental agreement, you will not be able to claim tax relief on your rent. However, if you were renting at 7 December 2010 you will continue to qualify for this relief even if you enter a different rental agreement after that date. The relief is being phased out and 2017 will be its last year.

Only the rent for private rented accommodation that you use as your sole or main residence will qualify for tax relief. This includes bedsits, flats, apartments and houses.

You cannot claim tax relief for rent paid to a local authority or a State agency, or for rent paid under a lease agreement for 50 years or more.

The_Morrigan

Fergie101 wrote: »

Thanks

So as I'll also be a tenant in another house, I can qualify for rental relief on the rent I pay too?

AFAIK, this relief has been phased out.


Edit: http://www.citizensinformation.ie/en/housing/renting_a_home/tax_relief_for_tenants.html

Tax relief

If you are renting accommodation privately (whether in Ireland or outside the State) and pay income tax, you may be eligible for tax relief on part of your rent. You can only claim this relief if you were already renting at 7 December 2010. If you were not renting on that date and you subsequently entered into a rental agreement, you will not be able to claim tax relief on your rent. However, if you were renting at 7 December 2010 you will continue to qualify for this relief even if you enter a different rental agreement after that date. The relief is being phased out and 2017 will be its last year.

Fergie101

So I can't claim tax relief ?

The_Morrigan

Fergie101 wrote: »

So I can't claim tax relief ?

You don't qualify for tax relief as you were not renting as at Decemeber 2010

Eldarion

7 years of tax relief because you were lucky to have claimed it in 2010. I don't see how it's fair not to have 6 years tax relief if you started renting in 2011, 5 years from 2012 etc. If that would cost too much then the phase out years should be reduced to 4 and have it open to everyone until it's removed.

You can't even claim back tax after 4 years, why the arbitrary 7 years for the lucky few.

TheBandicoot

Zulu wrote: »

In short the PRTB was set up to create more jobs for the boys. It's as close to a shake down/protection racket you'll come across. It does absolutely NOTHING for you as a landlord

I must be imagining all those judgments I see them publish in favour of the landlord side so.

Yes, it is extremely slow and still needs you to go to court to get their decision acted upon, but it is equally useless to both landlord and tenant in that regard.

EDIT:it's actually amazing how many resolutions there are there just for this year alone(consider how many disputes may never have even gone to PRTB). If only those resolutions were actually enforceable directly :rolleyes:

srsly78

Eldarion wrote: »

7 years of tax relief because you were lucky to have claimed it in 2010. I don't see how it's fair not to have 6 years tax relief if you started renting in 2011, 5 years from 2012 etc. If that would cost too much then the phase out years should be reduced to 4 and have it open to everyone until it's removed.

You can't even claim back tax after 4 years, why the arbitrary 7 years for the lucky few.

It works out to an absolute pittance anyway so don't feel like you are missing out on much.

Michael D Not Higgins

Eldarion wrote: »

7 years of tax relief because you were lucky to have claimed it in 2010. I don't see how it's fair not to have 6 years tax relief if you started renting in 2011, 5 years from 2012 etc. If that would cost too much then the phase out years should be reduced to 4 and have it open to everyone until it's removed.

You can't even claim back tax after 4 years, why the arbitrary 7 years for the lucky few.

It's a pittance anyway, works out to €200 for the year. I remember trying to claim it years ago on the Revenue online system and couldn't get it to work and thought it wasn't worth my time pursuing it.

Michael D Not Higgins

srsly78 wrote: »

It works out to an absolute pittance anyway so don't feel like you are missing out on much.

great minds

Zulu

TheBandicoot wrote: »

I must be imagining all those judgments I see them publish in favour of the landlord side so.

Yes, it is extremely slow and still needs you to go to court to get their decision acted upon, ...

Well that's kind of the salient point. PRTB -> Court -> eviction.

If you are a LL with tenants staying in your property, how long is it start to finish to get them out? All the while no rental income. Going to court isn't ideal, but when you've to do it anyway - whats the point of the PRTB except to provide an extra window of time for bad tenants to abuse?

Michael D Not Higgins

On the PRTB's website they say
"The central role of the PRTB is to support the rental housing market and to resolve cheaply and speedily disputes between landlords and tenants, affording protection to both parties without having to resort to the Courts."
Now this obviously isn't the case, since it is neither speedy nor prevents the use of the Court system. I would suggest disputes should be heard and decision granted within a month (I mean we can argue out a point in an afternoon on this forum), grant them more power of carrying out the judgment and appeals can only be made to the courts then.

The_Morrigan

Folks, this isn't a thread to critique the PRTB - can you please get back on topic